Asset manager Ashmore Group said on Thursday that assets under management slipped in the three months ended 30 September.
Ashmore said the first quarter of its current trading year saw assets under management decline 3.3% to $91.3bn, driven by net outflows of $1.0bn and a $2.1bn negative investment performance.
The FTSE 250-listed firm said there were net inflows in its external debt and equities theme, however, these were offset by net outflows in the local currency, corporate debt and blended debt themes over the quarter.
Ashmore also noted that market sentiment, prompted by the current uncertain macro environment, deteriorated as the quarter progressed, with a reduction in investor risk appetite in September meaning that returns were negative for the period.
Chief executive Mark Coombs said: “Investors have focused increasingly on the global growth outlook, including the impact of higher commodity prices, supply chain challenges and China’s ongoing reforms. Meanwhile, vaccination rates are increasing and restrictions are easing across a wide range of emerging markets, delivering a pickup in leading indicators and a broadening of economic growth. Further, central banks in emerging countries are raising interest rates, reinforcing the attractive yields available.
“This positive fundamental backdrop is not reflected in current valuations, presenting an opportunity for Ashmore’s active investment processes to exploit and enabling investors to benefit from increasing their allocations to emerging markets.”
As of 1000 BST, Ashmore shares were up 0.19% at 323.60p.
